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HUD Announces Disaster Assistance for California Wildfire Victims

Posted on October 19, 2017


Link to HUD Press Release

HUD ANNOUNCES DISASTER ASSISTANCE FOR CALIFORNIA WILDFIRE VICTIMS
Foreclosure protection offered to displaced families

WASHINGTON – U.S. Housing and Urban Development today announced HUD will speed federal disaster assistance to the State of California and provide support to homeowners and low-income renters forced from their homes due to wildfires.

President Trump issued a major disaster declaration for Butte, Lake, Mendocino, Napa, Nevada, Orange, Sonoma, and Yuba counties.

The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in these counties. HUD is:

  • Granting immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages. There are tens of thousands of FHA-insured California homeowners living in these impacted counties.
  • Offering forbearance and loan modification options – HUD offers different forbearance and loan modification options for FHA borrowers affected by disasters. Borrowers having trouble making regular payments should contact their loan servicer as soon as possible for more information.
  • Making mortgage insurance available – HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs.
  • Making insurance available for both mortgages and home rehabilitation – HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home;
  • Sharing information with FEMA and the State on housing providers that may have available units in the impacted counties – this includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

Read about these and other HUD programs designed to assist disaster victims.

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